Ready-to-wear producers unite to raise their share in global trade
Turkey’s ready-to-wear sector has launched plans to increase its share of global supply after years of stagnant growth. Despite being the seventh largest supplier in the world overall, the sector has remained fragmented and consequently lacks the efficiencies that could help it increase its potential. To combat this, sector representatives have established the Clothing Exporter Development Association with an aim to share orders that exceed their capacity with the members of the association. Members will also act together to market their products. There is also a plan to purchase a foreign store chain with a financing model they will create.
Founding executive board members of the association Huseyin Ozturk, Osman Sait Gunteki, Galip Koyuncu, Osman Ege, Mukaddes Baskaya and Murat Bekem, made a visit to daily DUNYA last week. Ozturk, the president of the association, stated that they would meet an important need with this structure and aimed to create a culture of cooperation. Despite the sector’s top ten world ranking, it only accounts for three percent of the world’s trade, Ozturk noted. The sector can become more efficient and has the potential to increase its share by a factor of 30, he added.
Shap ng the bus ness env ronment
Ozturk emphasized that production and the shape of the market is changing day to day. “While factories are being built, we should not continue to produce using old methods,” he said. The association will provide support on issues like using idle capacity, pursuing joint sales and joint purchases. They will establish a structure in which each member will be a consultant for the others. An association member who takes orders beyond its capacity will engage in production in partnership with another member of the association that is running below capacity, for instance. “We are not producing and making sales mutually,” Ozturk said. “When we buy a machine, the machine manufacturer determines the conditions. When we sell products, we act according to the customer’s requirements. Instead, we want to determine the conditions of production and sales. We are the second largest market in textile machinery in the world. And yet we still do not take advantage of the bargaining potential we have. The business world is so tired that it cannot find time to build networks. We need to get these business owners out of day to day operations. There is no other way to improve the business. The association will help the sector to achieve these goals.”